42nd Ordinary Session of the Executive Council
Theme:
Accelerating the implementation of the African Continental Free Trade Area (AfCFTA)
Statement
By
Antonio Pedro
Acting Executive Secretary
United Nations Economic Commission for Africa (ECA)
Addis Ababa, 15 February 2023
Her Excellency, Madame Aissata Tall Sall, Chairperson of the Executive Council, and Minister of Foreign Affairs, Republic of Senegal,
His Excellency, Mr. Demeke Mekonen, Deputy Prime Minister and Minister of Foreign Affairs, Federal Democratic Republic of Ethiopia
His Excellency Mr. Moussa Faki Mahamat, Chairperson of the African Union Commission,
His Excellency, Mr. José Manuel Albares, Minister of Foreign Affairs of Spain
Her Excellency, Dr. Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission,
Honourable Ministers,
African Union Commissioners,
Excellencies,
Distinguished guests,
Ladies and Gentlemen
We are in a perennial state of crisis – permacrisis. COVID-19 pushed an additional 55 million people below the poverty line, exacerbating already existing inequalities; while the Ukraine war disrupted the global economy as food and fuel prices shot up, leaving 310 million vulnerable to food insecurity. High global inflation has triggered global tightening of monetary policy that has led to tighter financial conditions.
I wish we could say that the worst is over. But it is not. Even when Africa appears as a shining light with economic growth of 3.9% in 2023 and 2024, higher than many other regions, it isn’t high enough to compensate for the losses experienced in the past 3 years. All these factors underscore the importance of building resilience through strategic foresight and innovative ideas.
Excellencies, Ladies and Gentlemen,
At ECA, we believe that the AfCFTA can be a catalyst to stimulate recovery, accelerate trade and industrialization, and build resilience into the African economy.
The AfCFTA continental market provides the economy of scale to invest in manufacturing, leading to increased intra-Africa trade, thereby bringing supply chains closer to home and injecting a degree of self-sufficiency in essential products such as medicines, food and fertilizers.
By providing more opportunities for women and the youth, the AfCFTA helps reduce inequality and poverty, and improves inclusion.
Indeed, our member States agreed to establish the AfCFTA in the first place precisely because they saw these opportunities and had the determination to seize them. The progress in the AfCFTA represents an extraordinary feat of diplomacy and statesmanship and deserves commendation and provide good reasons for hope.
Excellencies, Ladies and Gentlemen,
Yet, challenges remain. Let me highlight two that need our immediate attention – ratification and implementation:
First, 10 member States have not yet ratified the agreement and we should not leave them behind. I appeal to them to do so soon.
Second, it will soon be four years since the AfCFTA came into force. Regrettably, these four years also presented Africa with multiple shocks. Only through an accelerated and effective implementation of the AfCFTA can Africa build sufficient shock absorbers to build resilience. This means State parties speeding up the adoption of national legislative measures that give effect to AfCFTA instruments internally, including updating their tariff books, customs processes, certificates of origin, and the like.
I hope that the new protocols on competition policy, intellectual property rights and investment that have been negotiated over the past couple of years will be adopted by the Assembly at its current session.
As always, ECA will be there to support efforts to expedite signing and ratification of these important instruments by our member States.
Excellencies, Ladies and Gentlemen,
As we fast track the implementation of the AfCFTA, our resource-based industrialization should focus on value additions, smart operationalization of local content policies and tapping better into global value chains. To this end, ECA has supported the Battery and Electric Vehicle initiative that could enable the continent to tap into a global value expected to reach US$8.8 trillion in the next three years and US$46 trillion by 2050.
We are proud to work with Afreximbank and other partners in support of the Battery Value Chain, with strong political will from the Democratic Republic of Congo and Zambia.
We are supporting the establishment of a Battery Centre of Excellence and transboundary Special Economic Zone that will contribute to de-risk investment in the value chain. De-risking investments in Africa through improvements in soft and hard infrastructure must be our collective and individual priority.
Moreover, ECA has partnered with stakeholders in this room supporting the transboundary agro-industry park and special economic zone involving Zambia and Zimbabwe. This initiative could address the food security concerns through deeper value chains and tap into Africa’s food import market valued at about US$90 billion per year.
Excellencies, Ladies and Gentlemen,
By fast tracking the implementation of the AfCFTA, we will not only be benefiting Africa. Rather, we put Africa in a position to provide solutions to the global challenges of supply chain disruptions, food insecurity, climate change and migration.
In a nutshell, even if we haven’t created any of the global problems, we can provide solutions for them. Converting challenges to opportunities and rebuilding our resilience, that’s the Africa we want. At ECA, we will be supporting and collaborating with the African Union and other stakeholders in strengthening Africa’s agency and making the continent a globally competitive investment destination, as we make the AfCTA work for Africa. We know and we believe that this century belongs to us and I can confidently say It’s time for Africa!
I thank you for your kind attention.